Unobligated Balance in the United States
Unobligated Balance in the Federal Budget Process
Meaning of Unobligated Balance in the congressional and executive budget processes (GAO source): The portion of obligational authority that has not yet been obligated. For an appropriation account that is available for a fixed period, the budget authority expires after the period of availability ends but its unobligated balance remains available for 5 additional fiscal years for recording and adjusting obligations properly chargeable to the appropriations period of availability. For example, an expired, unobligated balance remains available until the account is closed to record previously unrecorded obligations or to make upward adjustments in previously underrecorded obligations, such as contract modifications properly within scope of the original contract. At the end of the fifth fiscal year, the account is closed and any remaining balance is canceled. For a no-year account, the unobligated balance is carried forward indefinitely until (1) specifically rescinded by law or (2) the head of the agency concerned or the President determines that the purposes for which the appropriation was made have been carried out and disbursements have not been made from the appropriation for 2 consecutive years. (See also Duration under Budget Authority; Expired Account; Expired Budget Authority under Availability for New Obligations under Budget Authority; Fixed Appropriation Account.)
Guide to U.S. Federal Budget Obligational Authority (Budget Process)
- Obligational Authority
- Obligated Balance
- Unobligated Balance
- Unexpended Balance
Resources
See Also
- Federal Appropriations
- Entries about the United States Budget Process in the Encyclopedia (including Unobligated Balance)
- Public Debt
Further Reading
- Legislatures and the budget process: the myth of fiscal control
(J Wehner, 2010)
- Reconcilable Differences?: Congress, the Budget Process, and the Deficit (JB Gilmour, 1990)
- Fiscal institutions and fiscal performance
(JM Poterba, J von Hagen, 2008)
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